IRC 6104(c) Disclosures: Proposed and Final Revocations

Refer to IRM 7.28.2, Information Disclosure to State Officials Under IRC 6104(c), for detailed guidance.

The Pension Protection Act of 2006 (PPA) significantly expanded the scope of information available to these agencies and gave the IRS the ability to provide this information much earlier in the examination process. PPA Section 1224 amended IRC 6104(c) which governs disclosures about IRC 501(c)(3) organizations to state tax or charity agencies.

The legislation included a provision requiring recipients of taxpayer information under IRC 6104(c) to meet comprehensive technical, procedural and administrative federal safeguard requirements under IRC 6103(p)(4).

Prior to the PPA, EO Examinations provided IRC 501(c)(3) organizations final revocation notifications to both state tax or charity agencies in all fifty states. EO stopped automatic notifications on August 17, 2007.

Agencies must now meet certain requirements to be eligible to receive disclosures under IRC 6104(c),

They must submit a Safeguard Procedures Report (SPR) and be approved to receive the information.

State agencies must enter into a memo of understanding with the IRS:

Outlining permitted disclosure and the use of information.

Committing to the statutory safeguard responsibilities.

Any 501(c)(3) organization (both public charities and private foundations) or disqualified persons located in these states fall under these provisions. Examiners in other states need to know these procedures for assigned cases not in the taxpayer’s geographic area.

List of States Eligible for IRC 6104(c) Disclosure:

Disclosure Code Section

Approved States

Types of Adjustments

Information to be Included

Send Information to

IRC 6104(c)

CA DC KY NE PA SC WV

Proposed and final revocations and terminations of IRC 501(c)(3) organizations

Proposed and final notices of deficiency for Chapter 41 and 42 excise taxes imposed on IRC 501(c)(3) organizations and "Taxable Persons"

30-Day Letter, Form 6018, RAR, Form 4883 (Chap 41/42)Final Adverse Determination Letter (FADL), Statutory Notice of Deficiency (Chap 41/42)

*TE/GE-EO-Field Reports